Correlation Between Blackstone Secured and Dreyfusstandish Global

Can any of the company-specific risk be diversified away by investing in both Blackstone Secured and Dreyfusstandish Global at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Blackstone Secured and Dreyfusstandish Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Blackstone Secured Lending and Dreyfusstandish Global Fixed, you can compare the effects of market volatilities on Blackstone Secured and Dreyfusstandish Global and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Blackstone Secured with a short position of Dreyfusstandish Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Secured and Dreyfusstandish Global.

Diversification Opportunities for Blackstone Secured and Dreyfusstandish Global

0.18

Correlation Coefficient

Blackstone Secured  Dreyfusstandish Global

Average diversification

The 3 months correlation between Blackstone and Dreyfusstandish is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Secured Lending and Dreyfusstandish Global Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfusstandish Global and Blackstone Secured is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Blackstone Secured Lending are associated (or correlated) with Dreyfusstandish Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfusstandish Global has no effect on the direction of Blackstone Secured i.e., Blackstone Secured and Dreyfusstandish Global go up and down completely randomly.

Pair Corralation between Blackstone Secured and Dreyfusstandish Global

Given the investment horizon of 90 days Blackstone Secured Lending is expected to generate 4.26 times more return on investment than Dreyfusstandish Global. However, Blackstone Secured is 4.26 times more volatile than Dreyfusstandish Global Fixed. It trades about 0.09 of its potential returns per unit of risk. Dreyfusstandish Global Fixed is currently generating about -0.03 per unit of risk. If you would invest  3,133  in Blackstone Secured Lending on December 11, 2024 and sell it today you would earn a total of  169.00  from holding Blackstone Secured Lending or generate 5.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Blackstone Secured Lending  vs.  Dreyfusstandish Global Fixed

Blackstone Secured

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Secured Lending are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Blackstone Secured is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Dreyfusstandish Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dreyfusstandish Global Fixed has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Dreyfusstandish Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Blackstone Secured and Dreyfusstandish Global

The main advantage of trading using opposite Blackstone Secured and Dreyfusstandish Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Secured position performs unexpectedly, Dreyfusstandish Global can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dreyfusstandish Global will offset losses from the drop in Dreyfusstandish Global's long position.

The idea behind Blackstone Secured Lending and Dreyfusstandish Global Fixed pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.